this case, consider the stock price and dividends of the companies Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. for the period from 2014 to 2019. Power Electric Industries Power Electric Industries Riviera Power Inc. Riviera Power Inc. Nature Energy Corp. Nature Energy Corp. year Year Stock price Dividends Year Stock price Dividends Year Stock price Dividends 2019 $18.5 $1.50 $38.5 $4.50 $58.5 $3.50 2018 $15.93 $1.10 $40.93 $3.10 $50.93 $2.10 2017 $10.20 $1.00 $
The analysis of risk and the search for yield in companies is determinant for financial success. In this case, consider the stock price and dividends of the companies Power Electric Industries, Riviera Power Inc. and Nature Energy Corp. for the period from 2014 to 2019.
| Power Electric Industries | Power Electric Industries | Riviera Power Inc. | Riviera Power Inc. |
Nature Energy Corp. |
Nature Energy Corp. |
|
| year | Year Stock price | Dividends | Year Stock price | Dividends | Year Stock price | Dividends |
|
2019 |
$18.5 |
$1.50 |
$38.5 |
$4.50 |
$58.5 |
$3.50 |
|
2018 |
$15.93 |
$1.10 |
$40.93 |
$3.10 |
$50.93 |
$2.10 |
|
2017 |
$10.20 |
$1.00 |
$43.20 |
$3.00 |
$53.20 |
$3.00 |
|
2016 |
$9.80 |
$0.90 |
$50.80 |
$2.90 |
$50.80 |
$2.90 |
|
2015 |
$8.50 |
$0.85 |
$48.50 |
$2.85 |
$48.50 |
$2.75 |
|
2014 |
$8.00 |
$0.80 |
$45.00 |
$2.80 |
$45.00 |
$2.60 |
6. Calculate the percentage volatility (betas) of Power Electric Industries and Riviera Power Inc. by running regressions from the returns. Compare the results with those reflected in the graph in the previous question.
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